Odonate Therapeutics Announces Financial Results for the Three and Six Months Ended June 30, 2019

SAN DIEGO--()--Odonate Therapeutics, Inc. (NASDAQ: ODT), a pharmaceutical company dedicated to the development of best-in-class therapeutics that improve and extend the lives of patients with cancer, today announced financial results for the three and six months ended June 30, 2019.

As of June 30, 2019, Odonate had $206.9 million in cash, compared to $139.1 million as of December 31, 2018. This increase in cash resulted primarily from the receipt of $117.7 million of net proceeds from Odonate’s June 2019 underwritten public offering, less net cash used in operating activities of $50.3 million. Odonate’s net loss for the three and six months ended June 30, 2019 was $28.7 million and $57.3 million, or $1.15 and $2.31 per share, respectively, compared to $19.4 million and $36.3 million, or $0.79 and $1.49 per share, respectively, for the same periods in 2018.

In March 2019, we expanded the development of tesetaxel by initiating two new clinical studies, CONTESSA 2 and CONTESSA TRIO, and, in June 2019, the Independent Data Monitoring Committee for CONTESSA, Odonate’s Phase 3 study investigating tesetaxel as a potential treatment for patients with metastatic breast cancer, recommended that the study continue with no modifications following a planned interim efficacy futility analysis,” said Kevin Tang, Chief Executive Officer of Odonate. “We continue to expect to complete enrollment in CONTESSA in the second half of 2019 and report top-line results in 2020.”

About Tesetaxel

Tesetaxel is an investigational, orally administered chemotherapy agent that belongs to a class of drugs known as taxanes, which are widely used in the treatment of cancer. Tesetaxel has several pharmacologic properties that make it unique among taxanes, including: oral administration with a low pill burden; a long (~8-day) terminal plasma half-life in humans, enabling the maintenance of adequate drug levels with relatively infrequent dosing; no history of hypersensitivity (allergic) reactions; and significant activity against chemotherapy-resistant tumors. In patients with metastatic breast cancer, tesetaxel was shown to have significant, single-agent antitumor activity in two multicenter, Phase 2 studies. Tesetaxel currently is the subject of three studies in breast cancer, including a multinational, multicenter, randomized, Phase 3 study in patients with metastatic breast cancer, known as CONTESSA.

About CONTESSA

CONTESSA is a multinational, multicenter, randomized, Phase 3 study of tesetaxel, an investigational, orally administered taxane, in patients with metastatic breast cancer (MBC). CONTESSA is comparing tesetaxel dosed orally at 27 mg/m2 on the first day of each 21-day cycle plus a reduced dose of capecitabine (1,650 mg/m2/day dosed orally for 14 days of each 21-day cycle) to the approved dose of capecitabine alone (2,500 mg/m2/day dosed orally for 14 days of each 21-day cycle) in approximately 600 patients randomized 1:1 with human epidermal growth factor receptor 2 (HER2) negative, hormone receptor (HR) positive MBC previously treated with a taxane in the neoadjuvant or adjuvant setting. Capecitabine is an oral chemotherapy agent that is considered a standard-of-care treatment in MBC. Where indicated, patients must have received endocrine therapy with or without a cyclin-dependent kinase (CDK) 4/6 inhibitor. Patients with central nervous system (CNS) metastases are eligible. The primary endpoint is progression-free survival (PFS) as assessed by an Independent Radiologic Review Committee (IRC). CONTESSA’s secondary efficacy endpoints are overall survival (OS), objective response rate (ORR) as assessed by the IRC and disease control rate (DCR) as assessed by the IRC. To learn more, please visit www.contessastudy.com.

About CONTESSA 2

CONTESSA 2 is a multinational, multicenter, Phase 2 study of tesetaxel, an investigational, orally administered taxane, in patients with metastatic breast cancer (MBC). CONTESSA 2 is investigating tesetaxel dosed orally at 27 mg/m2 on the first day of each 21-day cycle plus a reduced dose of capecitabine (1,650 mg/m2/day dosed orally for 14 days of each 21-day cycle) in approximately 125 patients with human epidermal growth factor receptor 2 (HER2) negative, hormone receptor (HR) positive MBC not previously treated with a taxane. Capecitabine is an oral chemotherapy agent that is considered a standard-of-care treatment in MBC. Where indicated, patients must have received endocrine therapy with or without a cyclin-dependent kinase (CDK) 4/6 inhibitor. Patients with central nervous system (CNS) metastases are eligible. The primary endpoint is objective response rate (ORR) as assessed by an Independent Radiologic Review Committee (IRC). The secondary efficacy endpoints are duration of response (DoR) as assessed by the IRC, progression-free survival (PFS) as assessed by the IRC, disease control rate (DCR) as assessed by the IRC and overall survival (OS).

About CONTESSA TRIO

CONTESSA TRIO is a multi-cohort, multicenter, Phase 2 study of tesetaxel, an investigational, orally administered taxane, in patients with metastatic breast cancer (MBC). In Cohort 1, approximately 90 patients (with potential expansion to up to 150 patients) with locally advanced or metastatic triple-negative breast cancer (TNBC) who have not received prior chemotherapy for advanced disease will be randomized 1:1:1 to receive tesetaxel dosed orally at 27 mg/m2 on the first day of each 21-day cycle plus either: (1) nivolumab at 360 mg by intravenous infusion on the first day of each 21-day cycle; (2) pembrolizumab at 200 mg by intravenous infusion on the first day of each 21-day cycle; or (3) atezolizumab at 1,200 mg by intravenous infusion on the first day of each 21-day cycle. Nivolumab and pembrolizumab (PD-1 inhibitors) and atezolizumab (a PD-L1 inhibitor) are immuno-oncology (IO) agents approved for the treatment of multiple types of cancer. One of these agents, atezolizumab, in combination with the intravenously delivered taxane, nab-paclitaxel, was recently approved by the U.S. Food and Drug Administration (FDA) as a first-line treatment for patients with metastatic TNBC. The dual primary endpoints for Cohort 1 are objective response rate (ORR) and progression-free survival (PFS). Secondary endpoints include duration of response (DoR) and overall survival (OS). Efficacy results for each of the three PD-(L)1 inhibitor combinations will be assessed for correlation with the results of each of the three approved PD-L1 diagnostic assays. In Cohort 2, approximately 40 elderly patients (with potential expansion to up to 60 patients) with human epidermal growth factor receptor 2 (HER2) negative MBC will receive tesetaxel monotherapy dosed orally at 27 mg/m2 on the first day of each 21-day cycle. The primary endpoint for Cohort 2 is ORR. Secondary endpoints include PFS, DoR and OS. Patients with central nervous system (CNS) metastases are eligible for both cohorts.

About Odonate Therapeutics, Inc.

Odonate Therapeutics, Inc. is a pharmaceutical company dedicated to the development of best-in-class therapeutics that improve and extend the lives of patients with cancer. Odonate’s initial focus is on the development of tesetaxel, an investigational, orally administered chemotherapy agent that belongs to a class of drugs known as taxanes, which are widely used in the treatment of cancer. Odonate’s goal for tesetaxel is to develop an effective chemotherapy choice for patients that provides quality-of-life advantages over current alternatives. To learn more, please visit www.odonate.com.

Forward-looking Statements

This press release contains "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995. We caution investors that forward-looking statements are based on management’s expectations and assumptions as of the date of this press release and involve substantial risks and uncertainties that could cause the actual outcomes to differ materially from what we currently expect. These risks and uncertainties include, but are not limited to, those associated with: expectations regarding the enrollment, completion and outcome of CONTESSA, our Phase 3 study of tesetaxel in patients with metastatic breast cancer (MBC); expectations regarding the enrollment, completion and outcome of our other clinical studies, including CONTESSA 2 and CONTESSA TRIO; our ability to obtain regulatory approval of tesetaxel; the unpredictable relationship between preclinical study results and clinical study results; and other risks and uncertainties identified in our filings with the U.S. Securities and Exchange Commission. Forward-looking statements in this press release apply only as of the date made, and we undertake no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances.

ODONATE THERAPEUTICS, INC.

Condensed Balance Sheets

(in thousands, except par value and share amounts)

 

 

 

June 30,

 

December 31,

 

 

2019

 

2018

 

 

(Unaudited)

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash

 

$

206,904

 

 

$

139,050

 

Prepaid expenses and other current assets

 

 

2,916

 

 

 

750

 

Total current assets

 

 

209,820

 

 

 

139,800

 

Property and equipment, net

 

 

1,798

 

 

 

1,899

 

Right-of-use lease assets

 

 

1,913

 

 

 

-

 

Restricted cash

 

 

251

 

 

 

251

 

Other

 

 

810

 

 

 

723

 

Total assets

 

$

214,592

 

 

$

142,673

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

7,961

 

 

$

10,777

 

Accrued expenses

 

 

13,360

 

 

 

7,365

 

Lease liabilities, current portion

 

 

502

 

 

 

-

 

Deferred rent, current portion

 

 

-

 

 

 

66

 

Total current liabilities

 

 

21,823

 

 

 

18,208

 

Lease liabilities, less current portion

 

 

1,908

 

 

 

-

 

Deferred rent, less current portion

 

 

-

 

 

 

461

 

Total liabilities

 

 

23,731

 

 

 

18,669

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

 

Common stock, $0.01 par value—100,000,000 shares authorized; 31,474,990 and 26,747,438 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively

 

 

292

 

 

 

244

 

Additional paid-in capital

 

 

376,168

 

 

 

252,012

 

Accumulated deficit

 

 

(185,599

)

 

 

(128,252

)

Total stockholders' equity

 

 

190,861

 

 

 

124,004

 

Total liabilities and stockholders' equity

 

$

214,592

 

 

$

142,673

 

ODONATE THERAPEUTICS, INC.

Condensed Statements of Operations

(Unaudited)

(in thousands, except share and per share amounts)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

 

 

2019

 

2018

 

2019

 

2018

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

$

26,453

 

 

$

17,024

 

 

$

53,084

 

 

$

31,484

 

General and administrative

 

 

2,783

 

 

 

2,755

 

 

 

5,374

 

 

 

5,176

 

Total operating expenses

 

 

29,236

 

 

 

19,779

 

 

 

58,458

 

 

 

36,660

 

Loss from operations

 

 

(29,236

)

 

 

(19,779

)

 

 

(58,458

)

 

 

(36,660

)

Interest income

 

 

534

 

 

 

389

 

 

 

1,111

 

 

 

389

 

Net loss

 

$

(28,702

)

 

$

(19,390

)

 

$

(57,347

)

 

$

(36,271

)

Net loss per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(1.15

)

 

$

(0.79

)

 

$

(2.31

)

 

$

(1.49

)

Weighted-average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

24,893,232

24,402,466

24,788,404

24,376,885

ODONATE THERAPEUTICS, INC.

Condensed Statements of Cash Flows

(Unaudited)

(in thousands)

 

 

Six Months Ended

 

 

June 30,

 

 

2019

 

2018

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(57,347

)

 

$

(36,271

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Equity-based compensation expense

 

 

5,915

 

 

 

2,600

 

Depreciation and amortization

 

 

180

 

 

 

60

 

Non-cash contributions for expenses

 

 

-

 

 

 

64

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Prepaid expenses and other assets

 

 

(2,253

)

 

 

1,399

 

Accounts payable

 

 

(2,822

)

 

 

287

 

Accrued expenses

 

 

5,995

 

 

 

2,343

 

Deferred rent

 

 

-

 

 

 

433

 

Net cash used in operating activities

 

 

(50,332

)

 

 

(29,085

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(103

)

 

 

(1,289

)

Net cash used in investing activities

 

 

(103

)

 

 

(1,289

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Proceeds from issuance of common stock, net of issuance costs

 

 

117,703

 

 

 

9,848

 

Proceeds from issuance of common stock under employee stock plans

 

 

586

 

 

 

98

 

Net cash provided by financing activities

 

 

118,289

 

 

 

9,946

 

Net increase (decrease) in cash and restricted cash

 

 

67,854

 

 

 

(20,428

)

Cash and restricted cash, beginning of period

 

 

139,301

 

 

 

198,105

 

Cash and restricted cash, end of period

 

$

207,155

 

 

$

177,677

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

Initial recognition of right-of-use lease assets

 

$

2,215

 

 

$

-

 

Property and equipment purchases included in accounts payable

 

$

7

 

 

$

113

 

 

Contacts

Company Contact
Odonate Therapeutics, Inc.
John Lemkey
Chief Operating Officer
858-731-8180
jlemkey@odonate.com

Contacts

Company Contact
Odonate Therapeutics, Inc.
John Lemkey
Chief Operating Officer
858-731-8180
jlemkey@odonate.com